End of Automotive Manufacturing in Australia

[Scott]

Toyota pullout: Thousands of jobs to go

The end of car manufacturing in Australia - confirmed with Toyota's announcement it would shut local production in 2017, taking thousands of jobs with it - could tip Victoria and South Australia into recession, industry experts and economists have warned.

Fifty-one years after Toyota made Altona the first place outside Japan to produce its cars, the automotive giant's global boss Akio Toyoda travelled to the plant and told 2500 workers their jobs would go in three years.

Toyota will follow Ford and Holden out of the country, with all three car makers announcing in the last year that they would cease manufacturing by 2017. All three brands will now import all of their vehicles.

http://www.smh.com.au/business/toyota-pullout-thousands-of-jobs-to-go-20140210-32d1b.html

-- Sydney Morning Herald 2014-2-11

[geriatrickid]

Not good for national security. There has to be some manufacturing capability retained, even if subsidized.

[CaptHaddock]

Don't the Aussies have their own car manufacturer?

[NeverSure]

This is what happens when wages and payroll taxes and other taxes and other costs get too high.

Ford is re-opening some plants and even building some new ones in the US, and Toyota has several plants in the US building cars and pickups. They are expanding them.

[johnmarhall]

Don't the Aussies have their own car manufacturer?

yes they do it is called holden

GM Holden Ltd, commonly designated Holden The company was founded in 1856 as a saddlery manufacturer. In 1908 it moved into the automotive field, before becoming a subsidiary of the United States-based general motors(GM) in 1931. After becoming a subsidiary of GM, the company was named General Motors-Holden's Ltd, becoming Holden Ltd in 1998 the current name was adopted in 2005.

[gazwa]

The death knell of the Aussie Ute!!! sooo sad

Edited February 11, 2014 by gazwa

[oxo1947]

This is what happens when wages and payroll taxes and other taxes and other costs get too high.

Ford is re-opening some plants and even building some new ones in the US, and Toyota has several plants in the US building cars and pickups. They are expanding them.

That is because you (the Taxpayer)-- is paying to Japan nearly $3,000 for every new car that rolls off the the conveyer----way more then any other country in the world.. if you think that's good economics, I'll get you a job in the current Thai government looking after the rice scheme, its based on the same principle.

FatCheck

http://theconversation.com/factcheck-do-other-countries-subsidise-their-car-industry-more-than-we-do-16308

[PaulHamon]

Don't the Aussies have their own car manufacturer?

Holden, was purchased by GM (I think) the states some time ago.

Has been receiving government handout for 15 years plus, should have closed a long time ago.

[neverdie]

Don't the Aussies have their own car manufacturer?

We were building Mitsubishi, but the plant closed down.

Ford closes in 2016.

Holden (General Motors ) and Toyota are both closing down in 2017.

There could be up to 50,000 jobs lost once you consider all the auto support companies and associated roles.

That's it Motor industry is finished in Australia

[HUAHIN62]

Economics of scale, not enough buyers in Oz and to expensive to export, so optimum production cant be reached. If the cost of production is not brought down or kept the same, more and more Oz manufacturing jobs will be off shored. Same same as US, UK, EU and Japan.

[thailampang2012]

Very bad news for the world's economy.

Very good news for the Asean market and other countries with low cost production. If Japan do no awake in time, also will lose its car production and will have to import Hondas and Toyotas....Next? Germany? UK? France? Italy?

The US growing car production? Sure...American cars are just assembled in the US with 80% parts from other countries and robotic labor....and still no gaining market of the foreign brands....Soon we will see Ford and GM assembling complete cars in China...not just the engines.

China is very quiet in its own car production.....Too quiet....

[jackflash]

> This is what happens when wages and payroll taxes and other taxes and other costs get too high.

Crap. Ii is Globalism which is killing manufacturing in the West.

A race to the bottom.

[car720]

Has anyone heard the addage that when gold rises the dollar falls.

When China was rising something had to fall.

The 3% who own 85% are never effected.

Australia sold the farm years ago and still are, what little is left.

My mother used, to work for Bonds. Do you remember them? Underwear, sox, singlets, etc.

One day she came home and said they are closing tomorrow and have never been seen since.

Australia needs to start producing or she is lost forever.

[falangadang]

This is the legacy of 50 years of government interference and control combined with union mismanagement!

A sad day for Australia,... just another nail in the coffin for a once great nation and land of milk and honey!

[falangadang]

Has anyone heard the addage that when gold rises the dollar falls.

When China was rising something had to fall.

The 3% who own 85% are never effected.

Australia sold the farm years ago and still are, what little is left.

My mother used, to work for Bonds. Do you remember them? Underwear, sox, singlets, etc.

One day she came home and said they are closing tomorrow and have never been seen since.

Australia needs to start producing or she is lost forever.

"My mother used, to work for Bonds. Do you remember them?"

Sure do,.. they used to have a factory on Pittwater Rd I think it was (Brookvale/Dee Why) that had a giant sized icon of the Aussie bloke wearing the Chesty Bonds singlet. At least I think that's where it was... either way.. I'm showing my age now eh?

Edited February 11, 2014 by falangadang

[simple1]

Very bad news for the world's economy.

Very good news for the Asean market and other countries with low cost production. If Japan do no awake in time, also will lose its car production and will have to import Hondas and Toyotas....Next? Germany? UK? France? Italy?

The US growing car production? Sure...American cars are just assembled in the US with 80% parts from other countries and robotic labor....and still no gaining market of the foreign brands....Soon we will see Ford and GM assembling complete cars in China...not just the engines.

China is very quiet in its own car production.....Too quiet....

A bit off topic, but Mercedes, Volvo &, Volkswagen Group all have manufacturing in China. VW is the Western market leader in China.by way of vehicle sales of 2.6 million vehicles in 2012. Guess there must be others manufacturing in China. Planning to do so are Jaguar Land Rover.

Getting back to Australia the Chinese Great Wall models have had reasonable sucess with 15,000 sold in 2013, with a target of 20,000 in 2014. God knows why the Oz government permitted them entry to the Australian market

Edited February 11, 2014 by simple1

[gazwa]

Has anyone heard the addage that when gold rises the dollar falls.

When China was rising something had to fall.

The 3% who own 85% are never effected.

Australia sold the farm years ago and still are, what little is left.

My mother used, to work for Bonds. Do you remember them? Underwear, sox, singlets, etc.

One day she came home and said they are closing tomorrow and have never been seen since.

Australia needs to start producing or she is lost forever.

"My mother used, to work for Bonds. Do you remember them?"

Sure do,.. they used to have a factory on Pittwater Rd I think it was (Brookvale/Dee Why) that had a giant sized icon of the Aussie bloke wearing the Chesty Bonds singlet. At least I think that's where it was... either way.. I'm showing my age now eh?

I used to cycle past the Bonds factory on my way to work in Harbord Rd every day.......Closure was the begining of the end for manufacturing in Australia.....I dream of driving my Holden ute in my Chesty Bonds singlet around Rangsit.......tis but an old farts dream....

[ozyjon]

This is what happens when wages and payroll taxes and other taxes and other costs get too high.

Ford is re-opening some plants and even building some new ones in the US, and Toyota has several plants in the US building cars and pickups. They are expanding them.

I'm just listening to the story on TV right now, one interesting politician said that the unions had a big part to do with this, pushing up costs and demanding too many benefits, so it's not the government to blame entirely.

[Spoonman]

Hahahahahaha, the unions called Toyota's "bluff" and it backfired.

[y2k]

When Holden announced that were closing up shop so-called experts said it was because Holden didn't export enough like Ford does. Then Ford announced they would close up shop too. The experts said Toyota would continue because if they closed up then the Australian Motor Industry would be dead. Toyota has now made that announcement.

[midas]

The overall effect of this will be much worse than the Sydney morning Herald article suggests, because it only talks about 2500 jobs to go. The total figure is more than 10 times that when you include the jobs of the parts suppliers who will find it very difficult to find new work to keep them all going in business.

And as Australia has just reignited its housing bubble once again, many of these people are also sitting on huge mortgages.

http://www.theguardian.com/business/2013/dec/18/car-parts-suppliers-warn-30000-jobs-hinge-on-keeping-toyota-in-australia

Edited February 11, 2014 by midas

[Spoonman]

When Holden announced that were closing up shop so-called experts said it was because Holden didn't export enough like Ford does. Then Ford announced they would close up shop too. The experts said Toyota would continue because if they closed up then the Australian Motor Industry would be dead. Toyota has now made that announcement.

You do know Ford pulled up stumps in OZ before Holden did don't you.

[y2k]

I thought Holden decided to quit first.

I stand corrected - Ford announced first but said they would stop in 88 years time. In reality they will stop in 2-3 years time roughly the same as Holden and Toyota.

Edited February 11, 2014 by y2k

[Spoonman]

I thought Holden decided to quit first.

I stand corrected - Ford announced first but said they would stop in 88 years time. In reality they will stop in 2-3 years time roughly the same as Holden and Toyota.

No. Ford said they will close their plants in 2016.

http://www.abc.net.au/news/2013-05-23/ford-to-close-geelong-and-broadmeadows-plants/4707960

you should really stick to facts that are easily obtained rather than talk utter nonsense.

[tx22cb]

"the automotive giant's global boss Akio Toyoda travelled to the plant and told 2500 workers their jobs would go in three years."

At least that's a nice touch by the Japanese - the top boss delivering the news himself.

[Prbkk]

I remember the first cars into production: the Toyota Tiara. People either fell about laughing or swore never to buy anything Japanese because of the war. Of course it evolved into the Corolla, arguably one of the most successful cars in history.

All the big companies had assembly plants in Australia . Sad day to see manufacturing go

[rotary]

With the makers telling the workers their jobs will be gone in a short time I wonder what that will do to the quality of the products coming off the line

[NeverSure]

This is what happens when wages and payroll taxes and other taxes and other costs get too high.

Ford is re-opening some plants and even building some new ones in the US, and Toyota has several plants in the US building cars and pickups. They are expanding them.

That is because you (the Taxpayer)-- is paying to Japan nearly $3,000 for every new car that rolls off the the conveyer----way more then any other country in the world.. if you think that's good economics, I'll get you a job in the current Thai government looking after the rice scheme, its based on the same principle.

FatCheck

http://theconversation.com/factcheck-do-other-countries-subsidise-their-car-industry-more-than-we-do-16308

The writer of that article doesn't understand how it works, and I don't think even then you read it all. The writer even goes into the bailout of the GM and Chrysler and puts those figures into the mix.

The US does not pay Japan money for cars they build.

My point was that the US government and the states which attract the manufacturers make the tax structure inviting. That is done for many companies to attract manufacturing.

And that's what I meant when I said that Australia had simply become uncompetitive with it's costs and policies. And the proof is right before your eyes. The manufacturers are leaving.

[Doc46]

This is the legacy of 50 years of government interference and control combined with union mismanagement!

A sad day for Australia,... just another nail in the coffin for a once great nation and land of milk and honey!

RIP Australian industry;;;;simply can't compete with the other nations in manufacturing and labour costs,,,

PEOPLE are just to GREEDY ;;;;factories want to make profit;;;; workers want to high wages ;;;;UNIONS whom are run by greedy incompetent inconsiderate PEOPLE;;;;;That's why nobody can keep the cost DOWN of the materials they need for manufacturing;;;;;

So very sadly to say;;;;It's the PEOPLE'S OWN FAULT;;;;

Edited February 11, 2014 by Doc46

[fasteddie]

This is the legacy of 50 years of government interference and control combined with union mismanagement!

A sad day for Australia,... just another nail in the coffin for a once great nation and land of milk and honey

"just another nail in the coffin for a once great nation"

When was that then?